Profitability Analysis (COPA) in SAP S4 Hana Controlling

Description

Profitability Analysis

Profitability analysis enable us to analyze the profitability of market segments according to multiple characteristics like:

· Customers

· Regions

· Products etc.

Market segment is the level where we are going to analyze the profits. It is combinations of characteristics values.

In profitability analysis we can analyze contribution margin (Sales – Cost of good sold) as per multiple market segments. Market segment can comprise of product and customer, customer and region, customer, and country etc.

Costing Based COPA

In costing based COPA we can evaluate incoming billing documents to automatically determine projected sales deduction and estimated cost estimates.

Account Based COPA

Profitability analysis will be updated upon posting in general ledger account.

Characteristics

Characteristics are the reporting dimensions where we want to analyze the profitability like customer, product, or region. Characteristics contain characteristic values, and they are defined at client level.

Maximum 69 characteristics can be assigned to one operating concern. (50 – non-fixed and 19 – fixed).

Fixed characteristics are company code, controlling area etc.

Non-fixed characteristics are region, product group, customer group etc.

Value Fields

Value fields represents the key figures like sales quantity, discount, rebate etc. Value fields are required only in costing based Copa. Maximum 200 value fields can be assigned to one operating concern.

Profitability Analysis Planning

Profitability analysis planning is used for the creation of sales plan using planning level and packages.

Operating Concern

Operating concern is the highest organizational unit in the controlling module which is required for profitability analysis. It records, tracks, and analyzes market related activities and we can do profitability analysis for the market segments.

Fiscal year variant should be the same for controlling area and operating concern.

Tables

CE1: Actual line items

CE2: Plan line items

CE3: Summarization

CE4: Segment

Derivation

Derivation lets us to find values for certain characteristics automatically based on known values of other characteristics. Derivation strategies are defined to assign characteristics. Derivation types are:

· Derivation rule

· Table lookup

· Move

· Clear

· User exit / Enhancement

Record Types

A: Incoming sales order

B: Direct posting from FI

C: Order settlement

D: OH allocation

F: Billing document transfer

What You Will Learn!

• Understanding the functions of profitability analysis
• Profitability management in SAP
• COPA structure and master data
• COPA planning

Who Should Attend!

• SAP S4 Hana Finance

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